Blue Barns sold 136 gallons of paint at P31 per gallon on July 6 to a customer with a cost of P19 per gallon to Blue Barns. Terms of the sale are 2/15, n/45, invoice dated July 6. The customer paid their account in full on July 24. On July 28, the customer discovered 17 gallons were the wrong color and returned the paint for a full cash refund. Blue Barns returned the gallons to their inventory at the original cost per gallon. Question: How much will be the cash to be refunded?

Blue Barns sold 136 gallons of paint at P31 per gallon on July 6 to a customer with a cost of P19 per gallon to Blue Barns. Terms of the sale are 2/15, n/45, invoice dated July 6. The customer paid their account in full on July 24. On July 28, the customer discovered 17 gallons were the wrong color and returned the paint for a full cash refund. Blue Barns returned the gallons to their inventory at the original cost per gallon. Question: How much will be the cash to be refunded?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 9EB: Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19...

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